NLIS 2
August 15, 2005
(Fisheries and Aquaculture)
 

Minister requesting federal action on EU shrimp tariff

Fisheries and Aquaculture Minister Trevor Taylor is today calling on the federal government to step up its efforts to find a solution to the high European Union (EU) tariff on Canadian shrimp that may force an early closure of the province�s shrimp industry, potentially throwing approximately 3,800 people out of work.

Minister Taylor is requesting an urgent meeting with federal International Trade Minister James Peterson to immediately develop a strategy to eliminate the tariff.

Market conditions exacerbated by the high 20 per cent tariff on product entering the EU are making the processing of shrimp at this point in the season unfeasible. The season usually extends into October. The limited annual quota of 7,000 tonnes of shrimp that is permitted into the EU at a reduced tariff of six per cent has been filled, effectively shutting the province out of that competitive market for the rest of the year.

�We are the world�s largest producer of cooked and peeled cold-water shrimp, yet all of our major competitors have preferred access to the most lucrative market in the world, which places us at a major disadvantage,� Minister Taylor said. �The Canadian government has to make finding a solution to this long-standing impediment a greater priority to ensure the industry�s long-term growth. Any movement on this issue would benefit all Canadian producers, not just those in Newfoundland and Labrador. I understand Quebec and the other Atlantic Provinces are facing similar circumstances.�

It is expected that only 65 per cent of the 66,000 tonne inshore shrimp quota will be landed this year because of market conditions. This affects roughly 1,800 harvesters and 2,000 plant workers across the province.

�It is vital that the Government of Canada move to have the European Union eliminate tariffs on Canadian cooked and peeled shrimp,� Minister Taylor said. �I personally met with the Canadian High Commissioner in London in November and reiterated the province�s position that the tariffs must be eliminated on cold water shrimp. There was also some internal discussion within the EU at that time and during the Cold Water Prawn Forum on possible changes to the tariff, but that hasn�t happened.�

Canadian producers continue to face a 20 per cent tariff on product entering the European Union, whereas Greenland, Norway, the Faroe Islands and Iceland are tariff free. The high tariff limits the ability of Newfoundland and Labrador producers to access this market. The United States is not a viable alternative as market prices there are low, resulting in low profit margins. This is exacerbated by the rise in the past 12 months of the Canadian dollar against U.S. currency.

The Government of Newfoundland and Labrador has been seeking relief from the high tariffs on cooked and peeled shrimp entering the EU for 10 years. While some progress has been made with the establishment of a limited quota at a lower tariff rate, competing nations do not face similar restrictions.

Media contact: Tracy Barron, Communications, (709) 729-3733 or 690-6157

2005 08 15                   12:10 a.m.


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